Due to a feedstock shortage, production delays have led to a market shortage of Majantol.

While the situation is expected to improve by May 2025, it will take some time for factories to clear the backlog of pending orders and return to normal operations.

Currently, prices remain stable, but this trend may change if the disruption persists.

The market has experienced strong demand in recent months, leading to continuous price increases.

With the new harvest in Sri Lanka not expected until May/June, the situation is likely to tighten further in the near future.

Situation has become more difficult after an accident at a major manufacturer leading to a significant shortage.  Lead times have become very long, and some suppliers have stopped quotations. Prices are expected to continue to increase in the near future.

 

Market surged drastically in H2 2024. Weather conditions have affected key production areas which significantly disrupted harvest and distillation processes and problems continue also in 2025. Availability is limited and prices remain at a very high level. No relieve is expected before the end of March.

Adverse weather conditions and Orange greening have impacted qualities and quantities and lead to an historically low harvest season 2024/2025. Availability is very limited, and prices continue to edge upwards. New harvest season is still far away, and it is probably that situation will become more critical in the coming months.

Due to two years of sluggish demand, farmers have shifted to other types of plantations. As a result, current availability is very tight, and prices have increased. The strong demand has made it challenging to source material with low methyl eugenol content. It is not expected that the situation will improve quickly.

Palmarosa is presently experiencing low availability in the market. Adverse weather conditions in December damaged the crops, and many farmers have already switched to other products due to low demand in previous years. If the strong demand for Palmarosa continues, it is likely that prices will keep increasing.

In 2024, the EU initiated an anti-dumping investigation into imports of Vanillin products series from China.

Final decision was expected by January 2025 but given the technical complexity of the case, the European Commission has decided to continue the investigation and not impose provisional anti-dumping taxes at this stage.

The resolution is therefore postponed to a date to be determined.

Following the failed November 2024 crop, the situation is becoming increasingly critical.

The upcoming June 2025 crop also appears to be at risk due to the lack of available raw materials.

Prices have been steadily rising over the past few months, and it currently seems unlikely that the situation will improve in the short term.

In May, the EU initiated and anti-dumping investigation into imports of vanillin and ethyl vanillin from China. The investigation covers synthetic vanillin, natural vanillin, biosynthetic vanillin (biovanillin), and ethyl vanillin.

Final determination is expected by early 2025, with any anti-dumping duties to be applied retroactive to October 2024. Similarly, the US began its own anti-dumping investigation in June 2024.

After a prolonged period of very low prices, the market for vanillin and ethyl vanillin may soon experience significant changes.

 

Prices in Indonesia appear to have stabilized following a prolonged upward trend.  Production is expected to remain limited through the end the end of 2024 and the outlook remains uncertain for this oil and its derivatives.

The rainy season and market dynamics will influence prices in the coming weeks. Conditions should begin to improve by Q2 next year.

In the past few months, Citronella oil prices spiked due to increased market demand. The higher prices encouraged farmers to resume production, and prices stabilized at a high level.

Continuous strong demand and long lead times may trigger a further price increase in the near future. Stay alert to market changes!

EU Deforestation Regulation (EUDR):

The EU Deforestation Regulation (EUDR) aims to reduce the EU’s impact on global deforestation and forest degradation.

The regulation which entered into force in 2023 applies to commodities linked to deforestation, such as palm oil, palm stearin, palm olein, fatty acid, glycerine, among others.

Operators and traders must prove that their products do not originate from recently deforested land or contribute to forest degradation.

The regulation will be fully applicable by December 30, 2025, for large and medium companies, and by June 30, 2026, for micro and small enterprises.

Prices for L-Carvone and Carvacrol have been steadily increasing as manufacturers face challenges in meeting the current market demand. The significant shortage of feedstock has led to extended lead times, with some suppliers halting their offers altogether. This upward trend in prices is expected to persist for a foreseeable future.

 

 

The oil derived from the rhizomes of a grass native to the Amazon, is noted for its distinctive scent profile, balsamic and woody,  that is highly valued in luxury cosmetics and niche perfumery. The oil is part of a Socio-biodiversity Enhancement Program®, which suggests a commitment to preserving the ecological and cultural diversity of the Amazon region.

Native from the Patagonia. With a sweet, fruity, woody, slightly spicy note, Paramela has a bit of each of the most important floral essences we know. It has the lusciousness of rose, the freshness of freesia, the hesperidic touch of orange blossom, the sweetness of tuberose, the spicy side of ylang-ylang, the sophistication of jasmine and the herbaceous side of geranium.

Originally from Vietnam. Also known as oud, the olfactory profile of Agarwood is complex and deep, woody, earthy, animalic and slightly sweet. It is highly prized in the perfume industry, where it is used as a base note in many luxury fragrances.

Following a significant rebound in the last quarter of 2023, the Eucalyptus market experienced slight fluctuations. The price of Eucalyptus Globulus Oil 80% currently is low. This price is noteworthy considering the poor crop due to drought conditions, marking the lowest yield in a decade. Despite this, ample inventory meets market demand, maintaining price stability in recent weeks.

The market for Ginger oil has reached its lowest point in the past decade, influenced by factors such as currency exchange rates, overseas demand, and production dynamics in both the fresh and dried ginger sectors. However, signs of an upward trend emerge as first-quarter demand strengthens, supported by increased inquiries and orders. Anticipated production reductions coupled with rising manufacturer costs suggest an imminent price increase, making it an opportune time to stockpile inventory.

Garlic oil prices have also plummeted in recent years. Reduced production and sluggish demand contribute to this decline. Nevertheless, given the expectation of demand resurgence, prudent stockpiling is advisable for established customers, with significant price hikes anticipated once demand rebounds.

The crude mentha oil market has exhibited a consistent upward trend since mid-February, characterized by a notable surge in early March followed by a recent decline. This surge was primarily fueled by speculative activity, further amplified by the announcement of the suspension of advance authorization for Menthol import on March 7, 2024. The suspension of advance authorization reflects a commendable initiative by the Government to curb unethical practices prevalent among well-known exporters. The scheme had been exploited for importing low-cost synthetic menthol, leading to its dumping in the Indian market and adulteration in exported Menthol, Cornmint Oil, and Peppermint Oil. While this measure may not entirely eliminate the import of synthetic menthol, it is expected to impact its availability in the domestic market, thereby driving up demand for natural alternatives. Despite a significant slowdown in demand over the past year, the onset of the new financial year heralds a positive outlook. Factors such as heightened consumer awareness, the suspension of advanced licensing, and the emergence of new demand patterns are anticipated to contribute to improved volumes in the current year. However, considering the crop situation, a decline in crop acreage compared to the previous year is anticipated. Potential yield fluctuations due to weather or other factors could result in a substantial supply shortfall in the upcoming year. Additionally, the crop situation, coupled with diminishing inventories in China, may create a market vacuum post this year's harvest season. The timing of this vacuum's impact on triggering a price rally remains uncertain. Nonetheless, the current price levels pose sustainability challenges for farmers, prompting them to explore more lucrative crop alternatives. Therefore, a market correction appears inevitable unless higher-yielding varieties are introduced. Given the aforementioned factors and the significant involvement of speculators in the mint market, it is advisable for customers to establish realistic target prices and procure materials accordingly, regardless of whether it is before or during the harvesting season. This strategic approach will enable stakeholders to navigate market volatility effectively.

Two weeks ago, the Flavour Talk exhibition took place in London, known as a showcase for flavor raw materials. This marked the 14th edition of the exhibition, and it was the largest yet, featuring 33 exhibitors and drawing a significant number of visitors. The event was deemed a success. Lluch was among the exhibitors. Their materials garnered considerable attention from flavorists, particularly white pepper CO2 extract and Scotch Bonnet chili. Both materials hail from Sri Lanka and are particularly dedicated to salted flavors, including savory and seasonings. Notably, these Sri Lankan ingredients were so well-received, underscoring the diversity and richness of flavors sourced from different parts of the world for the flavor industry. Events like Flavor Talk provide invaluable opportunities for companies to showcase their products, forge business connections, and share industry insights. Lluch Essence will continue to thrive in future exhibitions and remain a contributor to the world of flavors. Here you have more information regarding materials: Scotch Bonnet Chili- Extract The Scotch bonnet pepper (Capsicum chinense) derived its name for its supposed resemblance to a Scottish "tam o'shanter" bonnet. This fiery chili pepper belongs to the same species as habaneros and ghost peppers. The plant is herbaceous or shrubby, reaching heights of up to 2.5 meters. Its leaves are ovate, and the fruit is oblong to globular, ranging from yellow to red. The process involves the collection and extraction of green chilies, ensuring full traceability to the harvest location. We prioritize a short timeline between harvest and extraction to achieve the unique profile that captures the green chili note and its pungency, in a 100% natural extract. We emphasize ethical and sustainable sourcing, aiming to improve the livelihoods of the communities who have cared for the island's spices for generations. White Pepper CO2-Extract Piper nigrum is a flowering vine of the Piperaceae family. It is cultivated for its fruit, which has been used as a spice and medicine for thousands of years. This perennial climbing shrub can grow to a height of 10 meters, although in cultivation it is more often 3 to 4 meters. The fruit is a drupe with one single seed, that ripen to red. They are harvested just as the first fruits begin to turn red (before fully ripe) and are then dried and used as a spice and seasoning. Black pepper fruit is processed into white pepper with perfect control of the consistency of the profile at source. It is produced on a smallholder and intercrop farm in the center of the country with full traceability. It aims to showcase Sri Lankan natural resources on the world stage, with a renewed focus on ethical and sustainable sourcing and improving the livelihoods of communities who have cared for generations for the island's spices. Timut Pepper Organic Oil The Zanthoxylum alatum also called "winged prickly ash" or "Timut pepper", is a plant in the Rutaceae family. It is native to parts of East and Southeast Asia, and the north of the Indian sub-continent and naturalized in several regions. It is a deciduous shrub or small tree with pinnate leaves. The leaves have winged petioles, 3 to 5 broadly lanceolate sessile leaflets and are 3-7 cm long. The inflorescence forms axillary racemes with yellowish flowers. The fruit is a reddish follicle that turns blackish. The branchlets and leaves have prickles/ spines. The shrub flowers in Nepal from April to May, while the fruit is available all year round. Timut pepper fruit is used as a spice and to obtain the essential oil by distillation. The oil is used in skincare, in aromatherapy and for perfume creations. Yuzu Cold Pressed The Yuzu tree, also known as "Yuja", is a small evergreen of the Rutaceae family. The tree is medium sized, upright, compact, thorny and highly resistant to cold tempera¬tures. The leaves are medium sized with an elliptical limbus shape and an entire or slightly dentate margin. They have wide wings on the petiole with a deltoid shape and give off a characteristic odour when squeezed. New buds emerge in a soft purple colour. The flowers are medium sized, with white petals and yellow anthers. The fruit, also medium sized, has a flattened shape and a very marked button. The rough peel is yellow when mature, and the yellow pulp is highly acidic with numerous seeds, approximately 30 per fruit. Originally from eastern Asia, this fruit is widely used in Japanese and Korean cuisine. The essential oil is obtained without heating, through physical extraction from the peel of the pericarp of the fruit, and centrif¬ugal separation of the emulsion-essence extracted from the juice of ripe whole fruit. The essential oil is then chilled to separate and remove wax. Boronia Absolute The Boronia megastigma or brown boronia is a shrub in the family Rutaceae. It is a native plant of the south-west areas of Western Australia and currently it is also cultivated in Tasmania. It is an erect shrub with aromatic leaves and flowers, the leaves with three or five leaflets and the flowers cup-shaped, dark brown to purplish black on the outside and yellow inside. Boronia contains a unique combination of jasmonates and ionones that enhance a broad range of characteristics in formulation, for this reason it is widely farmed to obtain the absolute that is produced by non-chlorinated solvent extraction (hexane and ethanol) of the open flowers and fine linear leaves.

1. Political Unrest in Haiti The political landscape in Haiti has descended into chaos in recent weeks, primarily stemming from the Prime Minister's prolonged tenure. This has ignited widespread discontent among various factions, leading to violent clashes and a struggle for power. Heightened gang activity has further exacerbated the situation, plunging the nation into a state of uncertainty. However, a ray of hope emerged with the Prime Minister's resignation, offering a temporary reprieve from the turmoil. This development presents an opportunity for potential political reform, albeit amidst significant challenges, including the organization of fair elections under current conditions. Despite the upheaval, the resilient people of Haiti persevere, continuing operations in relatively safe areas despite logistical constraints and security risks. Efforts are underway to adapt to the volatile environment, with cautious optimism that stability may gradually return to the nation. 2. Production Challenges and Progress Production efforts have faced significant hurdles amidst Haiti's ongoing turmoil. The closure of Port-au-Prince's main airport due to heightened gang activity has disrupted logistics and halted shipments, posing challenges in fulfilling orders and meeting market demand. Nevertheless, our commitment to delivering quality products remains steadfast despite these setbacks. 3. Price Dynamics The price of vetiver and Amyris has seen an upward trend, influenced not only by the political situation but also by supply constraints. The scarcity of these resources has contributed to price increases, reflecting the challenges faced in production and distribution amid Haiti's tumultuous environment.

Orange production in Brazil is currently facing significant challenges stemming from the spread of greening disease and unfavorable weather conditions. Greening disease, caused by bacteria transmitted by an insect called psyllid, affects all citrus plants and was first detected in Brazil in 2004. It poses a severe threat to orange orchards as infected trees experience reduced fruit production, with adult trees potentially losing up to half of their yield. Currently, greening disease is present in 38% of the orchards in São Paulo, the country's largest producer of oranges.

As a result of greening disease and other factors such as adverse weather conditions, the upcoming orange harvest is expected to be 2.2% smaller compared to the previous year. The largest production region, which includes São Paulo and the Triângulo Mineiro, anticipates a decrease in production, which could have significant implications for both domestic and international markets. This decrease in supply has led to a substantial rise in orange prices, particularly for pear oranges, which have experienced a staggering 32.58% increase in price over the past 12 months. The rise in prices reflects the reduced availability of oranges in the market. Moreover, climate change exacerbates the challenges facing orange production in Brazil. The lack of rainfall and high temperatures during critical growth stages have further impacted production levels. This adverse weather pattern not only affects the quantity of fruit but also influences its quality.

The current forecast suggests that the 2023/24 harvest will see a decline in both orange and orange juice production. The U.S. Department of Agriculture highlights the impact of unfavorable weather conditions during the second flowering of orchards, resulting in a lower fruit yield. In response to these challenges, some producers are adjusting their farming practices. They are investing in lower quality oranges from diseased plants to maintain revenue levels. Others are exploring alternative regions for cultivation, such as areas known for soybean production like Goiás and Mato Grosso do Sul, which are free of citrus disease. Additionally, farmers are adapting their irrigation practices to compensate for decreased rainfall during critical growth periods. Looking ahead, there is uncertainty surrounding the future outlook for orange production in Brazil. Experts anticipate that the challenges posed by greening disease and adverse weather conditions may persist, potentially leading to further decreases in production levels.

The full extent of these challenges will become clearer in the coming months as the next harvest progresses. Overall, the current situation underscores the vulnerability of Brazil's orange industry to various environmental and biological factors, highlighting the need for continued research and adaptation within the sector.

Unprecedented Demand and Supply Challenges in the Clove Derivatives Market The clove derivatives market is experiencing an unprecedented surge in demand, defying traditional seasonal patterns. Recent months have seen a significant uptick in inquiries and orders, surpassing expectations even during typically quieter periods. This heightened demand has presented challenges in meeting customer requests, leading to limitations on product quantities. Looking ahead, uncertainties loom over the market's trajectory for the next few months, particularly with the sustained busyness observed recently. While the strong demand presents growth opportunities, it also poses challenges in meeting customer needs effectively. Factors such as ongoing weather conditions, including floods and landslides in key production areas further complicate the supply chain and contribute to uncertainty regarding future product availability. In conclusion, while the current surge in demand presents opportunities for growth in the clove derivatives market, it necessitates vigilance and adaptability to navigate supply challenges and meet evolving customer demands effectively.

In contrast to early forecasts, Patchouli Oil prices have not declined; instead, they have surged owing to a rise in companies rejoining the market. Depleted stocks have mandated replenishment, pushing the price of Patchouli Oil raw materials above $80 presently. Although a marginal price decrease is expected later on, this correction is unlikely to happen before the projected peak harvest period in July.

Combination of raw material scarcity, increased demand, and production disruptions contributed to the Dipropylene Glycol shortage in recent 2 month. Prices have increased substantially due to the limited availability. The situation should improve towards the end of Q2, 2024.

A recent surge in demand and feedstock difficulties of some manufacturers have strained the supply chain. The heightened interest in this compound has led to low stocks and intermittent shortage with no short-term solution in sight. Price tendency is up.

After strong and still increasing demand lead times have become longer. One of the main manufacturers is already fully committed until June 2024.

Market demand has picked up in recent weeks. For the moment supply and price remain stable.

Recent strong demand and a technical issue in one of the main manufacturers have led to longer lead times. For the time being price levels are unchanged.

A general production overcapacity with fierce competition among manufacturers resulted in very low market price levels. After one of the main factories stopped quotations, it seems probably that prices may move up in the coming weeks.

Market situation continues to be critical. Feedstock suppliers are once again facing difficulties to keep-up with deliveries. In consequence production output of the manufacturers is not enough to cover market demand. Present lead time exceeds 2 months.

After a long period of stable low-price levels, feedstock prices have increased substantially in the past weeks. Overall tendency points further up. It is possible that other lactones will follow this trend soon.

As we enter the third month of attacks on commercial vessels in the Red Sea by Houthi rebels, the outlook for a resolution to the ensuing conflict looks further away than ever. Major container carriers are looking into a mid-term scenario where East-West transit times will be affected by the inability to utilise the Suez Canal and, instead, is forced to transit via the Cape of Good Hope. Accordingly, most carriers have now adjusted schedules 100% to fully reflect the Cape of Good Hope routing, which also allows for a more precise analysis of the exact additional transit time compared to transit times before the conflict broke out. As one example, in the case of Hapag Lloyd, the transit time prior to the Red Sea conflict on the service from Shanghai to Barcelona was 36 days, the revised and newly published schedule on the same service now shows 47 days and, accordingly, an extended lead time of 11 days due to routing via the Cape of Good Hope. The re-routing of container ships affects not only the Europe-Asia trade lane but also has repercussions on other global trade routes. As vessels are redirected, there could be a redistribution of shipping capacity and changes in market dynamics, affecting freight rates and service levels across multiple trades. With this we see carriers implementing additional surcharges (cost recovery) on other trades, disconnected from the Red Sea or Cape of Good Hope routing as well. The extended transit times and potential delays at ports can disrupt supply chains, impacting inventory management and production schedules.